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. Last Updated: 07/27/2016

Shtokman Reserves Raised

Gazprom said Thursday that it had upgraded gas reserves in the giant Shtokman field to 3.8 trillion cubic meters, or by 100 million cubic meters.

It also said the Arctic field, which it will develop with France's Total and Norway's StatoilHydro, held 37 million tons of gas condensate, up from 31 million tons.

Gazprom spokesman Igor Volobuyev said the Federal Subsoil Resources Use Agency had revised the reserves upward in September.

Gazprom also broadened the definition of potential buyers of the gas, saying that supplies would target Atlantic markets. The company previously gave priority to the European market and intended to ship most of the gas to Germany through the Nord Stream pipeline under the Baltic Sea.

Volobuyev said that priority would not change.

Gazprom also said it would create an operating company, which will plan, finance and build Shtokman's first phase, by Dec. 20. The first phase is estimated to cost $15 billion to $20 billion.

Total will hold 25 percent of that company and book as much as one-quarter of the field's reserves. StatoilHydro will own 24 percent of the operating company and is expected to book equivalent reserves.

Gazprom has said it expects to start production of 23 billion to 24 billion cubic meters of gas per year from 2013, and will start shipping liquefied natural gas in 2014.